Are you still working in the accounts division of your business?

 

 

You might think you’re saving money by doing your own bookkeeping, but is that really the case? Here at Outside, we often talk about the seven divisions of business, one of which is Accounts. Many business owners neglect this division. Why? Generally, it falls into the “important but not urgent” quadrant. The problem is, when you ignore the important tasks, the urgent ones pile up. Suddenly, you’re scrambling to send out proposals, call the bank for an overdraft, and reply to countless emails. How do we reduce the urgent and focus on the important?

 

 

Awareness and Action

 

First, you need to become aware of what’s important. Make a list of crucial tasks and dedicate an hour each day to work on them. No excuses. Be the person who acts. We’re here to help you identify one of those important tasks: bookkeeping.

 

 

Why Bookkeeping Matters

 

Yes, bookkeeping can be boring and painful unless you’re one of us. But there’s a reason why every successful business owner needs to focus on it. The numbers tell a story about your business’s performance. Accurate bookkeeping allows you to make informed decisions so you can improve your business.

 

 

Using bookkeeping software like Hubdoc and Xero can provide you with more accurate and timely data, potentially saving you time to work on other important tasks. The key is to ensure your bookkeeping is accurate. This includes having a correct chart of accounts setup, such as separating direct costs (Cost of Goods Sold) from overheads.

 

Understanding COGS is crucial for assessing profitability and making pricing decisions.

 

 

Delegate and Focus

 

As your business grows, it makes sense to delegate bookkeeping tasks so you can focus on more critical areas like marketing or sales. Instead of doing the bookkeeping yourself, ask your bookkeeper or accountant to prepare a management report. This report will give you insights into how your business is performing, allowing you to implement strategies to improve certain metrics.

 

 

Conclusion

 

Bookkeeping is not just a compliance activity; it’s a strategic tool for business growth. Accurate bookkeeping and insightful management reports enable you to make informed decisions, manage cash flow effectively, and strategically plan for growth.

 

If you want to understand more about your bookkeeping process or are ready to delegate your bookkeeping, we’re happy to help.

 

 

 

 

Your Outside Team

 

 

 

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